Health and Happiness International Holdings reported a 23.7% year-over-year rise in first-half revenue to RMB 8.7 billion, driven by robust performance across its core segments. The Hong Kong-listed wellness group’s adjusted EBITDA surged 71.9% to RMB 1.9 billion, lifting the margin to 21.8%, while adjusted net profit more than doubled to RMB 919.2 million.
The company’s shares jumped 21.1% to HK$17.96 following the interim results presentation on August 26, 2026, extending gains to a 20.2% increase for the session. An interim dividend of HK$0.82 per share was declared, totaling approximately RMB 460 million and representing 50% of adjusted net profit.
Gross margins expanded across product lines, with overall gross margin rising to 65.4% from 62.5%. Infant formulas saw the sharpest improvement, climbing to 60.1% from 55.4%, while probiotic and children’s nutritional supplements reached 76.7%. Selling and distribution expenses declined to 38.1% of sales from 41.1%.
Segment performance varied, with Baby Nutrition & Care leading growth at 45.2% year-over-year. Chinese mainland infant milk formula revenue surged 58%, outpacing a 3.5% market decline. Biostime’s super-premium formula market share rose to 20.6% from 14.8%, supported by 550,000 new Stage 1 consumers. Adult Nutrition & Care grew 13.9%, while Pet Nutrition & Care advanced 4.8%.
H&H reduced gross debt by over RMB 1 billion to RMB 7.8 billion, lowering its net leverage ratio to 2.05x from 3.45x at year-end 2025. Finance costs fell to RMB 311.9 million, and the company secured a USD 320 million term loan facility at a hedged margin of 5.65%. Cash and equivalents stood at RMB 1.98 billion, with additional undrawn liquidity of RMB 1.26 billion and USD 20 million.
Management reaffirmed full-year guidance, targeting mid-to-high teens revenue growth and adjusted EBITDA margins, with adjusted net profit margins in the mid-to-high single digits. Chairman Luo Fei highlighted the company’s progress in executing its three-year growth plan, while CEO Akash Bedi noted the growth was achieved without compromising profitability.
The group maintained its leadership in key markets, with Swisse ranked first in multiple categories across China, Australia, and Singapore. Biostime retained top positions in organic and goat milk formulas in French pharmacy channels.
